July 2023

#TRENDING

Data on participant behaviors can help shape benefits strategies

How are employees using their workplace financial benefits? Are they participating? Are they optimizing all accounts and resources available to them? Our Financial Life Benefits® Impact Reports track participant behavior trends, as well as plan sponsor adoption of new plan design features and services, within our proprietary 401(k)1, Health Savings Accounts (HSA)2, equity1, and employee banking2 and investing1 programs. This data provides insights that help us better support you and your employees with meaningful financial wellness and holistic benefits programs. Let’s take a look at some highlights from this year’s reports.

401(k) plans1

  • Participation and contribution rates declined in 2022 compared to full year 2021.
  • A noteworthy two-thirds (66%) of participants contributed less than $5,000 to their 401(k) accounts last year.
  • Women continue to trail men in their levels of financial wellness but made progress closing the gap in 2022.

Health Savings Accounts2

  • 38% of HSA users contributed more than they withdrew, up from 26% the previous year.
  • 12% of account holders are investing part of their HSA funds for potential future growth; more men than women are investing.

Equity plans1

  • More participants received equity award grants in 2022 vs. 2021, but they were lower-valued awards.
  • 47% of shares acquired in 2022 were sold within the first three months, compared to 58% the previous year.

Employee banking2 and investing1

Three million employees now have access to the benefits of our employee banking2 and investing1 program, due to a 44% increase in companies offering this benefit over the previous year.

Key takeaways

  • Download each of the reports using the links above.
  • Talk with your Bank of America representative about these trends and how they might help inform your workplace benefits strategies.

1 Investment products are available from Merrill Lynch, Pierce, Fenner & Smith Incorporated.

2 Bank products are available from Bank of America, N.A., and affiliated banks.

The 2023 Financial Life Benefits® Impact Reports monitor plan participants’ behavior and sponsors’ adoption of new plan design features and services in our proprietary employee benefits programs, which serve more than 25,000 companies and more than 6 million employees as of December 31, 2022. All data is derived from Bank of America Retirement and Benefit Plan Services platform unless otherwise noted (as of December 31, 2022). Comparisons to 2021 reference data derived from Bank of America Retirement and Benefit Plan Services equity data platform as of December 31, 2021.